Tue, 16 Mar 1999

Sutiyoso promises overhaul of parking agency revenue

JAKARTA (JP): Governor Sutiyoso promised on Monday to make a significant revision in the parking agency's revenue in the draft city budget for the 1999/2000 fiscal year.

One of the major changes is the revocation of the initial plan of the city administration to help subsidize the agency to the tune of Rp 3.2 billion during the corresponding period, he told reporters following stern criticisms from the councilors concerning the subsidy plan.

According to Sutiyoso, he would summon the agency's officials some time this week to push them to make contributions to the city revenues.

"I'll insist the agency improves its income as there will no longer be any subsidy from the city," the governor said.

Sutiyoso also said that during the planned meeting the agency's officials would also be asked about problems, particularly those related to the leakages in the parking fee system.

He, however, did not mention the estimated income of the agency following the possible revision of the draft, saying that the city administration would wait on the agency's explanation.

In the initial 1999/2000 draft city budget, the parking agency was projected to earn Rp 7.8 billion for its usage during that period but its expenditure was estimated to reach Rp 11 billion.

This projection meant that the agency needed to be subsidized to the tune of Rp 3.2 billion by the administration.

The projected subsidy then drew criticism from city councilors, who said that the agency should, rather, become one of the city's sources of income.

Head of the Indonesian Democratic Party faction Lukman Mokoginta said the agency should instead make at least a Rp 30 billion contribution to the city revenues.

Assumption

This calculation was based on an assumption of only 10 percent of the city's total 2 million vehicle owners spending Rp 500 in parking fees every day throughout the year, he said on Monday.

"My calculation could be far below the real income which collectible by the agency," Lukman said.

Lukman's interpretation has validity as many car owners here spend more daily on parking fees than Rp 500.

Head of Commission D for development affairs Ali Wongso Sinaga said last week that it would not be difficult for the agency to increase revenues.

"It just needs an improvement in management. The agency is notorious for its poor management due to rampant leakages where a proportion of parking income does not go to the administration but into 'personal pockets'," he said.

Sinaga said the agency imposed the parking levy only at 361 points in off-street parking areas while the 1988 governor's decree on parking lots imposed the levy on 653 indicated locations.

"It means the agency is taking a levy from the remaining 292 parking lots but doesn't pay this to the administration," he said. (ind)